Ch1-4 Summary

• Product-Oriented


  Describes a firm that prioritizes decision making in a way that emphasizes technical superiority in the product
• Extended Marketing Research

  • Product– Customer Value
  • Price– Customer Cost
  • Place (Distribution) – Customer Convenience
  • Promotion– Customer Communication (tactics)
  • People (Serving Customers) – Customer Consideration
  • Physical Evidence (for SERVICES) – Confirmation
  • Process[es] (for SERVICES) – Co-ordination and Concern
• Marketing Research

  The application of the scientific method in searching for the truth about marketing phenomena
• The Scientific Method


  The way researchers go about using knowledge and evidence to reach objective conclusions about the real world
• Applied Marketing Research


  Research conducted to address a specific marketing decision for a specific firm or organization
• Geo-Demographics


  Refers to information describing the demographic profile of consumers in a particular geographic region
• Production-Oriented


  Describes a firm that prioritizes efficiency and effectiveness of the production processes in making decisions
• Marketing Orientation


  The corporate culture existing for firms adopting the marketing concept. It emphasizes customer-orientation, long-term profitability over short-term profits [or sales volume], and a cross-functional perspective
• Customer-Oriented


  Describes a firm in which all decisions are made with a conscious awareness of their effect on the consumer
• Relationship Marketing (RM)


  Communicates the idea that a major goal of marketing is to build long-term relationships with the customers contributing to the firm’s success
• Marketing Concept


  A central idea in modern marketing thinking that focuses on how the firm provides value to customers more than on the physical product or production process
• Total Quality Management (TQM)


  Total Quality Management is a business philosophy that has much in common with the marketing concept
• Basic Marketing Research


  Research conducted without a specific decision in mind that usually does not address the needs of a specific organization. It attempts to expand the limits of marketing knowledge in general and is not aimed at solving a particular pragmatic problem
• Pricing


  Involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints
• Marketing Channel


  A network of interdependent institutions that perform the logistics necessary for consumption to occur
• Supply Chain

  Another term for a channel of distribution, meaning the link between suppliers and customers
• Promotion

  The communication function of the firm responsible for informing and persuading buyers
• Integrated marketing communication (IMC)


  All promotional efforts (advertising, public relations (PR), personal selling, event marketing, and so forth) should be coordinated to communicate a consistent image
• Promotion Research

  Investigates the effectiveness of advertising, premiums, coupons, sampling, discounts, public relations (PR), and other sales promotions
• Total Value Management


  The management and monitoring [of] the entire process by which consumers receive benefits from a company
• Integrated Marketing Mix


  The effects of various combinations of marketing-mix elements on important outcomes [like sales and image]
• Performance-Monitoring Research


  Refers to research that regularly, sometimes routinely, provides feedback for evaluation and control of marketing activity
• Marketing Metrics


  Quantitative ways of monitoring and measuring marketing performance
• Cross-Validate


  To verify that the empirical findings from one culture also exist and behave similarly in another culture
• Marketing research is the application of the scientific method in searching for the truth about market and marketing phenomena. Research applications include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and generally understanding the marketing process and the way consumers extract value from consumption. Thus, it is the intelligence-gathering function in business. This intelligence assists in decisions ranging from long-range planning to near-term tactical decisions. Although many business decisions are made “by the seat of the pants” or based on a manager’s intuition, this type of decision making carries with it a large amount of risk. By first researching an issue and gathering intelligence on customers, competitors, and the market, a company can make a more informed decision. The result is less risky decision making
• Marketing research assists in decisions ranging from long-range planning to near-term tactical decisions
• Researching an issue and gathering intelligence on customers, competitors, and the market results in less risky decision making
• Understand the difference between basic and applied marketing research

  • Applied marketing research seeks to facilitate managerial decision-making
  • Basic or pure research seeks to increase knowledge of theories and concepts
• Marketing research should and should not be conducted


  Based on time constraints, availability of data, nature of the decision to be made, and the benefit of the research information versus its cost
• Decision making


  By first researching an issue and gathering intelligence on customers, competitors, and the market, a company can make a more informed decision
• Role of marketing research changes with the orientation of the firm

  Market-oriented and stakeholder-oriented companies tend to do more marketing research and emphasize marketing research more than do other firms
• Applied research examples

  Emphasized in this text although tools and techniques discussed are appropriate to either type of research
• Marketing strategy development and implementation

  Consists of identifying and evaluating opportunities, analyzing market segments and selecting target markets, planning and implementing a marketing mix, and analyzing firm performance
• Market research


  • Refers to applied research
  • Marketing research refers to basic research
• Technology and internationalization changing marketing research

  • Modern computing and media technologies make data collection, study design, data analysis, and data reporting easier and better in many respects
  • Companies are doing research in an international marketplace, emphasizing research that can assess the degree to which research tools can be applied and interpreted the same way in different cultures
• Marketing research helps in each stage of the marketing strategy development and implementation process by providing information for strategic decision-making
• Information
• Big Data
• Marketing Analytics refers to efforts to measure relevant data and apply analytical tools to better understand how a firm can en
• Open Data Partnership

  Researchers agree to make the information they collect from activities like Web tracking available to the consumers from whom they gather the information